The Excise Department of Thailand is exploring the use of blockchain technology for tax refunds and the prevention of tax frauds in the country, as reported by Bangkok Post on Nov. 25.
The Director-general of the Excise Department, Patchara Anuntasilpa, said that the department would adopt the blockchain-based system of tax refunds by mid-2020.
The present system used by the department involve paper-based documents that are submitted by the oil exporters, and according to Patchara, the inspection of these documents is not as thorough as it needs to be.
According to an anonymous source, if the tax refund process takes a lot of time, it increases the operators’ cost. Therefore, oil exporters require a method that can rapidly refund oil tax payments.
Such a system will enable the department to carry out a thorough inspection of tax payments and prevent oil tax frauds by oil exporters in addition to reducing the time spent on review of payments.
More to that, with the adoption of this blockchain-based system, the department will be able to keep an eye on the entire export process, right from the refinery to the depots and even to the destination countries.
As per the report, the department has partnered with Krungthai Bank (KTB) to develop this blockchain-based system in order to upgrade their services.
Another source even noted that the blockchain-based tax refund system could speed up the process up to three times more than the current system
Meanwhile, the reported blockchain-based system for oil tax refunds is just one of the three pilot projects that the Excise Department plans to initiate with KTB. The other two include the renewal of distribution licenses for liqueur, tobacco, and playing cards and e-bank guarantees.
Thailand’s government, as Coinfomania reported earlier this month, is also looking to adopt blockchain technology to improve its financial sector.
Source: Coinfo mania